Federal Trade Commission Announces Proposed Rule Banning Fake Reviews and Testimonials
June 30, 2023
The Federal Trade Commission has introduced a proposed rule aimed at cracking down on deceptive practices involving consumer reviews and testimonials. This initiative targets dishonest tactics such as fake reviews, the suppression of genuine negative feedback, and the payment for positive reviews. These practices mislead consumers seeking authentic product or service evaluations and unfairly disadvantage honest businesses.
The proposed rule seeks to impose civil penalties on violators and includes provisions to address emerging challenges posed by technologies like generative AI, which can facilitate the creation of fake reviews. It prohibits activities such as creating or selling fake reviews, repurposing reviews for different products, and incentivizing reviews based on specific sentiments. The FTC is inviting public comments on these measures to strengthen consumer trust and ensure fairness in online commerce.
For more information, see here: https://www.ftc.gov/news-events/news/press-releases/2023/06/federal-trade-commission-announces-proposed-rule-banning-fake-reviews-testimonials
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